Proforma Invoice vs Invoice: What's the Difference?

The short answer

A proforma invoice tells a client what something will cost. An invoice tells them what they now owe. Everything else follows from that one difference.

Both documents can list the same lines, the same prices and the same totals. What separates them is legal and accounting status, not layout.

Side by side

When a proforma is the right document

The client needs an internal approval. Larger companies raise a purchase order against a document. A proforma gives them something to attach without committing you to a receivable that may never exist.

You want payment up front. For a new client, or a project that needs materials bought before work starts, a proforma is the normal way to request a deposit.

Goods are crossing a border. Customs need a declared value before the shipment moves. The proforma declares it; the commercial invoice travels with the goods.

You are not ready to extend credit. Issuing an invoice creates a debt you may have to chase. A proforma does not.

Four mistakes that cause real trouble

1. Using your invoice number on it. This is the expensive one. Many tax authorities require the invoice series to be unbroken and chronological. Every proforma that is never accepted burns a number and leaves a gap you will be asked about. Keep a separate series — see how to number invoices for the formats that survive an audit.

2. Not labelling it. A document that looks exactly like an invoice will be treated as one: paid, booked, and possibly reported. The words "Proforma invoice" belong in the document title, not in a footnote.

3. Treating it as a contract. A proforma is an offer. It can be withdrawn and it can expire. Put a validity date on it — "Valid until 30 September 2026" — so both sides know when the quoted price stops applying.

4. Expecting the buyer to reclaim VAT from it. They cannot. Their accountant will ask for the actual invoice, and if you have already been paid, you still have to issue one.

What to put on a proforma

Everything a normal invoice carries, plus three things it does not:

• the words Proforma invoice as the document title;
• a validity date — how long the price holds;
• a payment condition if you expect a deposit ("50% due before work starts").

And one thing it must not carry: a number from your invoice series.

Making one in Kinvoice

The invoice builder is the same for both documents — change the title, change the numbering prefix, and you have a proforma:

1. Set the document title to Proforma invoice.
2. Use a separate number, e.g. PF-2026-001.
3. Put the validity date and any deposit terms in Notes.
4. Download the PDF. In guest mode it is generated inside your browser — nothing is uploaded.

When the client agrees, issue the same lines as a real invoice with the next number from your normal series. With a PRO account both documents stay in the journal, so you can see which proformas turned into invoices and which did not.

Practice differs between countries, and some jurisdictions have specific rules on what a proforma may and may not state. This article describes common international practice, not tax advice — check anything that affects your reporting with your accountant.